The Sarhad Chamber of Commerce and Industry (SCCI) has raised urgent concerns over delays in implementing a promised reform to shift from bank guarantees to insurance guarantees for Afghan transit trade. SCCI President Fazal Moqeem Khan emphasized that this policy, announced over five months ago, aims to streamline cross-border commerce but remains stalled, causing significant disruptions for traders in Pakistan and Afghanistan.
The delay is increasing transaction costs and threatening Khyber Pakhtunkhwa’s role as a regional trade hub. Traders engaged in commerce with Afghanistan and Central Asian countries face mounting financial losses due to the lack of action. Khan highlighted that the reform is vital for reducing bureaucratic hurdles and fostering smoother trade relations, which are critical for economic stability in the region.
Recent discussions on platforms like X reflect similar frustrations among the business community, with many pointing to the need for swift policy execution to boost bilateral trade. The SCCI has urged the federal government to prioritize this reform to support traders and strengthen economic ties with neighboring countries.
Published in SouthAsianDesk, June 27th, 2025
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